Porsche AG: 100 percent ownership In December 2009, Volkswagen AG acquired 49.9% of the stock in Porsche Zwischenholding GmbH, Porsche AG’s holding company.
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The Way We Got Here
The German parliament passed various legislation in order to maintain control over the automobile sector after the government-owned Volkswagen turned privatized in 1960. These statutes essentially said that any shareholder holding more than 20% of the company (the government held 20.1%) could veto any proposed resolution. This safeguarded governmental power and eliminated the chance of a future hostile takeover.
Porsche SE, a German holding firm founded by Ferdinand Porsche’s family and with assets in the automotive sector, started buying shares of the Volkswagen Group in 2005. It continued until both it and the government had veto power, and by 2006, Porsche held 25.1% of the company.
After several years of stock building and denial of takeover intentions, Porsche SE stated in October 2008 that it had acquired 42.6% of VW shares with options on an additional 31.5%. It declared its intention to increase the percentage to 75%, which would enable it to record VW AG’s cash position on its own accounts.
A market short-squeeze was the outcome. The government declared it would not sell its 20.1%, which it still owned. There were very few shares left for anyone else once their shares were added to Porsche SE’s shares. As the short sellers rushed to cover, the price of each share shot up from roughly 200 to over 1,000 euros. Volkswagen soon rose to prominence and briefly held the title of most valuable company in the world.
Porsche SE had to absorb the cash difference between the market price and the sum it had promised to pay outstanding stockholders in order to carry out its plan.
The EU Court of Justice finally determined in October 2013 that a revised Volkswagen statute formally “complied in full” with EU regulations, designating Porsche SE as Volkswagen AG’s controlling shareholder.
Platforms for Electric Cars
Porsche engineers took the initiative to create VWG’s first fully electric chassis platform, known as the J1. This platform serves as the foundation for the recently released Taycan electric car and the impending Audi e-tron GT (see the December 2019/#269 tech feature). Additionally, it was reported that Bentley will release a BEV based on the J1 platform, but as of this writing, it has not been confirmed.
The new Bentley Continental GT and Flying Spur also use the MSB platform, which is also shared by the 971 Panamera.
The J1 Platform is but one minor pillar of VWG’s comprehensive electrification strategy. The carmaker has been obliged to increase its focus on BEVs as the future of automotive propulsion systems in the wake of the infamous VWG “Dieselgate” incident that broke in 2015. In order to reach full carbon neutrality by 2050, the VW Group has unveiled ambitious ambitions to market at least 70 distinct electric vehicles by 2028.
Building this new class of BEVs on platforms that are fundamentally different from those used to produce vehicles with internal combustion (IC) engines is a key element of this plan. It can first seem cost-effective for other automakers to use the same platforms for gasoline and IC engine variants. However, it frequently leads to poor packaging and raises the price of subsequent engineering and manufacture. For its current all-electric e-tron SUV, Audi did recently use the MLB Evo platform, but that was only a temporary solution to ensure it had a BEV to compete with Jaguar’s I-Pace and other models.
The MEB (Modular Electric Drive) platform, a specific BEV “skateboard chassis” akin to the J1 created by Porsche, is the foundation of VWG’s electrification strategy. The business predicts that 27 MEB-based vehicles will be available by 2022 and will invest 30 billion euros (or $33.1 billion USD) in the development of BEVs over the next five years. Tesla popularized the skateboard design, which puts the battery packs in the underfloor area and uses the aluminum frame of the vehicle as a load-bearing part (albeit the concept first appeared on a GM Research and Development concept car in 2002). The electric motor(s) and powertrain, power electronics control units, and suspension parts are all carried by the front and rear subframes.
The PPE (Premium Platform Electric) platform for medium and large BEVs, which was jointly created by Audi and Porsche, is the following piece of the VWG electric vehicle puzzle. The next-generation Macan BEV, which will make its debut in 2021, is most likely to be the first vehicle to ride on the PPE platform. A spate of PPE-based BEVs bearing the Audi name are most likely to follow.
However, given the likelihood of additional industry consolidation, big automakers are establishing unusual partnerships to subsidize development expenses. Ulrich Widmann of Audi has made public comments that indicate the VW Group is interested in providing the PPE platform to other manufacturers who want to create their own BEVs.
VW purchased Porsche and Audi when?
In 2011, Volkswagen and Porsche amalgamated. The parent business of numerous other luxury automobile manufacturers, such as Audi, Bentley, Bugatti, and Lamborghini, is the Volkswagen Group.
Porsche – owned by Audi?
In 2011, Volkswagen acquired Porsche. Porsche was once considered a division of Volkswagen AG (interestingly, besides being the Porsche parent company, VW also owns Audi, Bugatti, and Lamborghini). In light of this, Volkswagen AG is the entity that owns Porsche.
Which Porsche is powered by an Audi?
From 1976 through 1988, Audi in Neckarsulm, Germany, produced the Porsche 924 sports car for Porsche. The 924, a two-door 2+2coupe, took over as the entry-level model for the firm, replacing the 912E and 914.
The 924 was the first production-ready Porsche to use water cooling and a front-engine, rear-wheel-drive configuration, despite the 928 having been developed before. Additionally, it was the first Porsche to be available with a standard fully automated transmission.
The 924 made its debut in front of the general public in November 1975, and a turbocharged model was released in 1978. Porsche introduced an improved and reengineered version as the 944, which took the place of the 924 in the United States in 1983, in response to growing competition. Audi stopped making the engine that powered the Porsche 924 in 1985, which led Porsche to replace it with a 944 engine that had been significantly tweaked, rename the car the 924S, and reintroduce it in the United States. With slightly over 150,000 units produced, the 924 was a commercial success.
Which is superior, Porsche or Audi?
A fantastic place to start your search is with Audi models. Both of these brands are known for their high standards of craftsmanship and aesthetic appeal, but Porsche capitalizes on its track record for performance by offering higher top speeds, more off-road features, and quicker charging times.
Does Porsche use engines from Audi?
Registered. The 2018 Macan Turbo 3.6L was the final genuine “Porsche” engine. After 2018, every Porsche Macan engine will be an Audi engine with various tuning features.
Do Porsche and Audi utilize similar parts?
Porsche acknowledged 33%. It is essentially a half-sister for the current Audi Q5; in fact, Porsche’s engineers are pleased to acknowledge that almost a third of the under-body components are shared between the two vehicles.
Why did VW eventually purchase Porsche?
Another justification for Porsche’s purchase of Volkswagen stock was now clear: Porsche believed it was getting a good bargain and that the company was inexpensive.
Volkswagen acquired Porsche when?
Both businesses have been working to hasten the merger. The potential of a significant tax payment for both companies, meanwhile, was one of the deal’s roadblocks.
According to numerous sources, the two corporations may have had to pay more than 1 billion euros in taxes if they had purchased the remaining part prior to 2014, making the decision less desirable.
Analysts said that the parties may be able to save that expense by arranging the agreement so that Porsche would receive one VW common share in exchange for it.
According to them, if this is done, the transaction might end up being viewed as a restructuring of the business rather than a takeover.
It’s a wonderful bargain for Volkswagen, both financially and operationally, according to Credit Suisse analyst David Arnold.
The rapid integration model that has finally been agreed upon, according to Volkswagen, “can be implemented on economically viable terms.”
Volkswagen produces Porsche, right?
The Group consists of ten brands from five different European nations: Audi, Lamborghini, Bentley, Porsche, and Ducati. Volkswagen, Volkswagen Commercial Vehicles, A KODA, SEAT, and CUPRA are also included. The Volkswagen Group also has a large number of additional brands and business divisions, including financial services. Volkswagen Financial Services includes leasing, leasing for customers and dealers, banking, insurance, and fleet management services.
The Volkswagen Group is laying the groundwork for the biggest reform process in its history with its aNEW AUTO – Mobility for Generations to Comea Group strategy and future program: the realignment of one of the best automakers to become a leading provider of sustainable mobility on a global scale. To do so, the Group will change its core automotive business, which will include, among other things, the introduction of another 30 or more fully electric vehicles by 2025 and the expansion of battery technology and autonomous driving as new key businesses.
How much of VW is Porsche owned?
Despite market turbulence brought on by Russia’s war against Ukraine, VW intends to list the Porsche sports-car division.
After VW’s Porsche sports-car division is listed on the stock market, the wealthy Porsche and Piech families intend to maintain their controlling ownership of the Volkswagen Group.
Through their family investment company, Porsche Automobil Holding SE, the Porsche and Piech family owns a 53 percent stake in the Volkswagen Group.
According to Bloomberg Intelligence, Porsche SE intends to acquire a 25 percent blocking position in the anticipated Porsche IPO, which may fetch up to 90 billion euros ($99.1 billion).
According to Chief Financial Officer Johannes Lattwein on Tuesday, Porsche SE has a solid financial position and ample room to raise outside funding.
On a conference call with reporters, Lattwein stated that there are “no plans to lower the share in Volkswagen at this time.”
The IPO, the VW Group’s greatest strategic move in years, was being worked on by teams that were “very engaged,” he said.
Despite market instability brought on by Russia’s conflict against Ukraine, VW is still making plans to list the Porsche sports car division, one of VW’s major sources of profits.
The action is a part of VW’s aim to increase its market valuation and finance the largest transition in the industry to electric automobiles. It’s impossible to exclude out negative effects from the Ukrainian conflict on the IPO, according to Lattwein.
CEO Hans Dieter Poetsch, who is also the chairman of VW’s supervisory board, stated on the call that Porsche SE has “an great future ahead.”
“Cash flow is anticipated to increase even further, and the company can be expected to have both an attractive payout policy and an investment policy that is focused on the future.”
According to the agreement, the supply contracts between VW and Porsche would remain in effect, Poetsch added.
The Porsche and Piech families would be able to recover direct control over the sports car brand in what was formerly their family business under the present parameters of the IPO, which are still being negotiated.
The family would receive a 25 percent plus one share blocking minority holding under the proposed arrangement.
Lattwein said the Porsche and Piech families’ direct ownership of the brand would be financed in part by a special dividend VW had proposed.
Which Porsche is powered by a VW?
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As of model year 1970, Porsche’s new entry-level vehicle was the 914, which was jointly developed by Porsche and Volkswagen.
The mid-engine Sports Car with two seats was also known as the “VW Porsche.” The very long wheelbase compared to the length of the car, the small overhangs, the removable glass fiber reinforced plastic roof center panel, and the wide safety bar were all notable design elements. Additionally, the 914 had pop-up headlights.
The 914 had two engines available at the time of its debut. Volkswagen 914: 1.7-liter flat-four engine with 80 horsepower 914/6: 110-horsepower 2.0-liter flat-six engine from the Porsche 911 T Following this came a 2.0-liter four-cylinder engine in model year 1973 that had 100 horsepower and a 1.8-liter four-cylinder engine in model year 1974 that had 85 horsepower.
The ignition lock was on the right in the four-cylinder variants. Four wheel nuts were used to mount the 914’s wheels. The Osnabruck body manufacturer Karmann created the standard 914 model (914/4) for the market.